Demand / Supply questions

DEMAND AND SUPPLY SHIFTS QUESTIONS

1. Using a supply and demand diagram, show an impact on a firm which has a successful advertising campaign and a government providing a subsidy

2. Using a supply and demand diagram, show an impact on a firm which produces a good consumers have an increased preference in and a substitute good which increases in price

3. Using a supply and demand diagram, show an impact on a firm which produces goods / services for a larger population of people and incurs a lower cost of production

4. Using a supply and demand diagram, show an impact on a firm producing goods / services for consumers which have a higher real income and which have a higher VAT

5. Using a supply and demand diagram, show an impact on a firm producing goods / services in which consumers will speculate future price increases and a firm which has access to newer technology

6. Using a supply and demand diagram, show an impact on a firm which produces more expensive substitute goods and has a higher number of competitors in the market

7. Using a supply and demand diagram, show an impact on a firm which produces goods / service which have high elasticities and a firm constraint to heavy regulation

8. Using a supply and demand diagram, show an impact on a firm which produces goods / services that are price inelastic and are grown in natural conditions

9. Using a supply and demand diagram, show an impact on a firm producing necessity goods and shift in consumer tastes to other goods

10. Using a supply and demand diagram, show an impact on a firm producing luxury goods and incurs a higher cost of production